Overtime Calculation Laws with Examples in Oman

Working Rules for employees is defined in Oman Labour Laws ROYAL DECREE NO. 35/2003. Overtime in Oman is Calculated on the Basis of Gross Salary and the rate fixed in provisions and articles of Labour laws. Employees do overtime work to earn some more while some time it requires to do work by his employer.

Depending on the profession of the employee working hours may be less or more but must have limit according to labour laws every employee has right to know how much overtime he can do  and how much he paid after doing the work.

The main clause that define overtime for monthly wages is defined in Article 70 while article 68, 69, 71 and 72 are related to working hours.

Also it is good to mention that Overtime is not applicable to managerial profession such as

Senior Managers or Assistants, Admin or Supervisory jobs

While Those working in Ports, Airports, on vessels, Ships or Aircraft they require to get approval from MOL and set the allowance which will be given in case of overtime.

The daily regular working hour cap set in laws is maximum of 8+1hour break in Article 68 OR 48 hours per week. Employee may requested to work for 2 hours overtime(Minimum limit) but can be in increased up to 9 hours per day if the workers profession related to security guard, trading, hotels etc.

In computation of Overtime travelling time, breaks and resting will not be included.

Computation of Overtime Defined in Article 70:

If employer want his employee to do overtime than he must paid him, the payment shall be calculated on the bases of gross salary, per hour salary and increase rate of 25% of his wage for overtime.

EXAMPLE:

If any employee has gross salary of 300 OMR than see how much he should be paid one hour of overtime.

Gross (total) Salary=300OMR

Per Day Salary= 300 x 12/365 = 9.86 per day

Per Hour Salary= 9.86/8 = 1.23 Omr

Total Overtime = Total No. of Overtime hours x per hour salary x 1.25

So if employee works for 2 hours than;

2 x 1.23 x  1.25 = 3 OMR per hour overtime

Overtime in Case of Night Work defined in Article 73:

If employer want his employee to do overtime at night in between  9.00 PM to 4.00 AM than he must paid him, the payment shall be calculated on the bases of gross salary, per hour salary and increase rate of 50% of his wage for overtime.

Using Above Example:

Total Overtime = Total No. of Overtime hours x per hour salary x 1.25

So if employee works for 2 hours than;

2 x 1.23 x  1.5 = 3.69 OMR

Overtime in Case of Public Holidays and Fridays, Weekly Holidays:

If overtime work is performed during the weekly rest day or during the official holidays the employee shall, unless compensated with another day during the subsequent week, be entitled to double salary for such day, unless he is granted another day in lieu thereof within the following week.